The Hong Kong Police Force (HKPF) and the Securities and Futures Commission (SFC) have joined forces to create a specialized working group aimed at combatting illegal cryptocurrency trading activities.
According to an announcement made on October 4 by the SFC, this initiative came into being following a meeting held on September 28 between the SFC and the Hong Kong Police Force. This development occurred in the wake of ongoing arrests and unfolding events surrounding Dubai's JPEX exchange.
This move comes shortly after 11 individuals were apprehended due to their alleged involvement in the JPEX controversy. The Securities and Futures Commission had accused the company of promoting its services in the region without the requisite license.
The primary objective of this newly formed working group is to bolster the monitoring and investigation of illicit activities taking place on virtual asset trading platforms (VATPs). It seeks to facilitate the exchange of information pertaining to suspicious activities, evaluate the risks associated with dubious exchanges, and foster cooperation in conducting investigations.
In light of the JPEX incident, Hong Kong regulators have previously expressed their intent to enhance the regulation of the cryptocurrency market. The working group comprises members from the SFC's Enforcement Division as well as the Commercial, Cybersecurity, Financial Intelligence, and Investigation Bureaus of the Hong Kong Police Force.
Christopher Wilson, the SFC's Director of Enforcement, emphasized that the regulator is committed to allocating resources to combat problematic VATPs and safeguard the interests of investors. Hong Kong Police Assistant Commissioner (Crime) Eve Chung highlighted the working group's significance in terms of intelligence sharing and collaborative efforts to address the challenges posed by VATPs, ultimately enhancing protection for the Hong Kong public.
The China Securities Regulatory Commission (CSRC) has also responded to these developments by publishing lists of licensed, deemed licensed, closed, and pending exchanges, alongside a catalog of "suspicious VATPs."
